Bank of America reported non-interest expense of $16bn for Q2 2023 and attributed the 5% increase compared to the same quarter in 2022, to investments in the franchise across people and technology, along with high FDIC expense
Bank of America Banking branch in Porter Ranch. (Credit: Coolcaesar at en.wikipedia)
Bank of America has reported a net income of $7.4bn or $$0.88 per diluted share for the second quarter ended 30 June 2023, a 19% rise compared to $6.2bn or $0.73 per diluted share for the corresponding period of the previous year.
The US-based lender reported a total revenue (net of interest expense) of $25.2bn for the second quarter (Q2) of 2023, an 11% increase compared to $22.7bn for the same quarter in 2022.
The bank reported a pre-tax income of $8bn for Q2 2023, a 16% increase compared to $6.9bn for the respective quarter previous year.
Bank of America reported a non-interest expense of $16bn for Q2 2023, a 4.5% increase compared to $15.3bn for the same period in 2022.
The company attributed the increase in non-interest expense to investments in the franchise across people and technology, along with high FDIC expense.
Bank of America chair and CEO Brian Moynihan said: “Continued organic client growth and client activity across our businesses complemented beneficial impacts of higher interest rates and produced an 11% increase in revenue.
“We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market. All businesses performed well, and we saw improved market shares, particularly in our Sales and Trading and Investment Banking businesses.
“A strong balance sheet and ample liquidity allowed us to continue investments in our franchise to drive long-term value for stakeholders.”
Bank of America’s Consumer Banking business reported a net income of $2.85bn for Q2 2023, a 1% decrease compared to $2.88bn for the respective quarter previous year.
The bank’s Global Wealth and Investment Management unit reported a net income of $978m for Q2 2023, a 15% decline compared to $1.15bn for the same period in 2022.
The company’s Global Banking arm reported a net income of $2.65bn for Q2 2023, a 76% increase compared to $1.5bn for the respective quarter previous year.
The US lender’s Global Markets business reported a net income of $1.10bn for Q2 2023, which remained unchanged from the same quarter in 2022.
Bank of America chief financial officer Alastair Borthwick said: “Our focus remains on growing our businesses organically by deepening existing client relationships, establishing new relationships, and driving operating leverage.
“We did that again in the second quarter, producing our eighth consecutive quarter of operating leverage. We delivered strong top-line and bottom-line growth with net income growing 19% from Q2-22.
“Capital strength allowed us to return more than $2.3 billion to shareholders in dividends and share repurchases, and we announced our plan to increase our quarterly common stock dividend by 9% in Q3-23, subject to approval by our Board of Directors.”